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Centre brings new policy to increase exports | The Central Government has revised its foreign trade policy to increase exports in labour intensive engineering goods. Replying to a question in the Rajya Sabha, Union
Minister of State for Commerce and Industry Jyotiraditya Scindia, said the Centre
has announced incentives for labour intensive engineering goods under the reward
and incentive schemes in the Foreign Trade Policy (FTP) 2009-14. According to
the new policy, 12 new products added under Focus Product Scheme (FPS), eligible
for incentives in the form of Duty Credit Scrip at two percent of Free on Board
(FOB) value of exports to all markets. The new policy has given higher incentives
to 113 new products in the form of Duty Credit Scrip at five percent FOB value
of exports under special FPS on exports to all markets. He informed the Centre
has added 1837 new products under Market Linked Focus Product Scheme (MLFPS) eligible
for incentive in the form of Duty Credit Scrip at two percent of FOB value of
exports to specified markets. Export of labour intensive engineering goods to
110 countries notified under Focus Market Scheme under FTP is eligible for incentive
in the form of Duty Credit Scrip at three percent of FOB value of exports, Scindia
said. Under the Focus Product Scheme, there is a provision that to promote investment
in upgradation of technology of specified sectors, additional Duty Credit Scrips
shall be given to Status Holders at one percent of the FOB value of past exports.
This facility, in addition to other specified sectors, will also be available
for engineering sector excluding iron and steel, non-ferrous metals in primary
or intermediate form, automobiles and two wheelers, nuclear reactors and parts,
and ships, boats and floating structures. The duty credit scrips can be used for
procurement of capital goods with Actual User condition. Scindia said the facility
would be available upto March 2011. In order to enable access to cheaper dollar
credit, the Reserve Bank of India (RBI) has reduced rate of interest for Dollar
credit at LIBOR plus two percent instead of LIBOR plus 3.5 percent. Continuation
of Interest Subvention of two percent provided to labour intensive sectors that
include the micro, small and medium enterprises (MSME) sector which is the most
labour intensive segment of Indian industry. |
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